Stahl Inc. produces three separate products from a common process costing $$100,000.$ Each of the products can be sold at the split$-$off point or can be processed further and then sold for a higher price. Shown here are cost and selling price data for a recent period.

$$

Sales Valueat Split$-$OffPoint

Cost toProcessFurther

Sales Valueafter FurtherProcessing

Product $10$

$$60,000$

$$100,000$

$$190,000$

Product $12$

$15,000$

$30,000$

$35,000$

Product $14$

$55,000$

$150,000$

$215,000$

Instructions

Determine total net income if all products are sold at the split$-$off point.

Determine total net income if all products are sold after further processing.

Using incremental analysis, determine which products should be sold at the split$-$off point and which should be processed further.

Determine total net income using the results from $($c$)$ and explain why the net income is different from that determined in $($b$).$